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Debt is extremely common in the UK, yet many people avoid talking about it. This can make it harder to recognise when borrowing has become difficult to manage.
High debt does not always mean owing a specific amount. What matters most is whether the debt is affordable, how much of your income goes towards repayments, and whether you are relying on further borrowing to stay afloat.
This guide explains what may be considered high debt, the difference between high debt and expensive debt, warning signs to look out for, and practical steps for getting debt back under control.
High debt (or high debt ratio) refers to a financial situation where someone owes a large amount of money compared with their income, assets and ability to repay.
Debt may include:
There is no single figure that means someone is automatically in high debt. For one person, £5,000 of borrowing may be manageable. For another, it may create serious pressure.
A more useful way to assess debt is to consider whether repayments remain affordable after essential living costs.
High debt is often linked to a high debt-to-income ratio.
This means a large proportion of your income is being used to repay borrowing. As a general guide, if more than 50% of your income is going towards debt repayments, this may be a sign that your debt level is becoming difficult to manage.
You may also be in high debt if you are:
These are important warning signs that debt may be becoming unmanageable.
Debt levels vary significantly across the UK. One way to measure household debt is the percentage of debt to disposable income. According to a House Of Commons Library report published on 5th June 2026, household debt-to-income ratio has been in a declining trend over recent years. In Q4 2025 the ratio was at 117% compared to 135% in early 2016 and 155.8% at its peak in Q3 2008.
As of April 2024, total UK household debt was reported at around £1850 billion. This included mortgages, credit cards, personal loans and other forms of household borrowing.
Average total household debt, including mortgages, stood at approximately £65,143. When broken down per adult, this was around £34,487.
Unsecured debt, which includes borrowing such as credit cards, personal loans and overdrafts, was around £4,232 per UK adult.
These figures show that debt is common, but average debt levels should not be used as a benchmark for what is affordable. Your own income, expenses and repayment ability matter more than national averages.
High debt and expensive debt are not always the same thing.
High debt means owing a large amount compared with your income and ability to repay.
Expensive debt means borrowing that carries high interest rates or charges.
For example, a mortgage may be a large debt, but it may have a lower interest rate and be repaid over a long period. Credit card debt or short-term borrowing may be smaller in value but more expensive if interest and charges are high.
Expensive debt can become harder to manage because the balance may reduce slowly if you are only making minimum payments.
Some borrowing may support a long-term financial goal. This is sometimes described as “good debt”, although it is still debt and still needs to be affordable.
Examples may include:
Bad debt usually refers to borrowing that does not improve your financial position and may cost more than the benefit it provides.
Examples may include:
Even “good debt” can become a problem if repayments are unaffordable.
People can fall into debt for many reasons. Often, it is not caused by one single decision, but by several pressures building over time.
Common reasons include:
Debt problems can affect anyone, particularly when income does not keep pace with essential costs such as rent, mortgage payments, energy bills, food and transport.
Debt can affect people at any age and income level, but some groups of people may be more vulnerable.
Young adults may experience debt pressure due to student loans, lower starting salaries and the cost of establishing financial independence.
People living in areas with higher housing and living costs may also face greater pressure, particularly if they rely on credit to manage regular expenses.
However, the key issue is not age or location alone. The main risk is whether borrowing remains affordable and whether the borrower has a realistic plan to repay it.
High debt can affect more than your bank balance.
It may lead to:
High debt can also make it harder to deal with unexpected costs. If most of your income is already committed to repayments, even a small emergency can create further pressure.
Persistent debt usually refers to a situation where someone continues making low or minimum repayments for an extended period, while much of the payment goes towards interest and charges rather than reducing the amount borrowed.
This can apply to products such as:
Persistent debt can be a warning sign because the balance may reduce very slowly, making it harder to become debt-free.
If you are mainly paying interest and charges rather than reducing what you owe, it may be worth reviewing your repayment plan.
Credit cards and personal loans work differently.
A personal loan usually provides a fixed amount of money, repaid over a set term with scheduled monthly repayments.
A credit card is revolving credit. You can spend up to your limit, repay and reuse the available credit.
Credit card debt often becomes expensive when balances are not cleared in full and interest is added each month. If you are only making minimum payments, the debt may take much longer to repay.
When deciding which debt to repay first, consider:
High-interest debt is often the most expensive and may be sensible to prioritise repayment of this debt first, where affordable.
Debt can become harder to manage when borrowing turns into a cycle. Common debt traps include:
Using credit cards for regular expenses can create problems if the balance is not repaid in full.
Spending more than you earn can quickly lead to growing debt.
High-interest debt can grow quickly and may cost significantly more over time.
Before taking out any borrowing, make sure you understand interest rates, charges, repayment terms and what happens if you miss a payment.
Using new credit to repay existing debts can make the situation worse if there is no wider repayment plan.
Paying off debt can feel overwhelming, but breaking the process into smaller steps can help.
Start by making a full list of what you owe, including:
Once you have a clear picture, you can begin prioritising.
Two common repayment strategies are the snowball method and the avalanche method.
The snowball method focuses on repaying the smallest debts first, regardless of interest rate.
This can provide motivation because you see progress quickly.
The avalanche method focuses on repaying the highest-interest debts first. This can reduce the total interest paid over time and may be more cost-effective.
The right method depends on your circumstances. Some people need the motivation of quick wins, while others prefer to reduce interest as efficiently as possible.
Whichever method you choose, continue making at least the minimum payments on all debts.
You should consider seeking free debt advice if:
Free and confidential debt advice is available from organisations such as StepChange, National Debtline and PayPlan.
Before contacting a debt advice organisation, it can help to prepare information about:
This helps advisers understand your situation and explain the options available.
You are generally responsible only for debts that are yours, or debts you have jointly agreed to, such as joint loans or debts where you acted as guarantor.
If you are contacted about a debt you do not recognise:
If the debt is not yours, you can dispute it and ask the creditor to correct their records.
Once debt is under control, the next step is preventing the same issue from returning.
Helpful habits include:
Even a small emergency fund can reduce the need to borrow when unexpected costs arise.
High debt can feel difficult to face, but taking action early can make a significant difference.
Start by understanding how much you owe, what it costs, and whether repayments are affordable. From there, you can prioritise expensive debt, speak to lenders, seek free debt advice and create a realistic repayment plan.
Managing debt is not about comparing yourself to national averages. It is about whether your borrowing works for your own financial situation.
If you are worried about your debts, speaking to your lender or a free debt advice organisation can help you understand your options.
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